Updates as of 4/2/2020
NOTE: The CARES Act was signed into law on 3/27/2020.
Filing and Payment Deadline Updates
Federal Filing and Payment Deadline: Extended to 7/15/2020
The federal extended deadline also applies to the following:
– 2019 IRA and HSA contributions
– 1st Qtr 2020 estimated tax payments. Note: The 2nd Qtr 2020 payment remains due 6/15, 2020. However, if you combine the 1st and 2nd qtr payment and label the entire payment as 1st Qtr, then effectively the due date is 7/15/2020
NJ Filing and Payment Deadline: Extended to 7/15/2020
NY Filing and Payment Deadline: Extended to 7/15/2020
PA Filing and Payment Deadline: Extended to 7/15/2020
Automatic Payments Scheduled Prior to Deadline Changes
If you have automatic payments already scheduled for 4/15 or earlier with the IRS, visit the following page for instructions and the phone number to call to cancel them if you NEED to.
- Once your return is accepted, information pertaining to your payment, such as account information, payment date, or amount, cannot be changed. If changes are needed, the only option is to cancel the payment and choose another payment method.
- Call IRS e-file Payment Services 24/7 at 1-888-353-4537 to inquire about or cancel your payment, but please wait 7 to 10 days after your return was accepted before calling.
- Cancellation requests must be received no later than 11:59 p.m. ET two business days prior to the scheduled payment date.
- If a payment is returned by your financial institution (e.g., due to insufficient funds, incorrect account information, closed account, etc.) the IRS will mail a Letter 4870 to the address we have on file for you, explaining why the payment could not be processed, and providing alternate payment options.
- In the event your financial institution is unable to process your payment request, you will be responsible for making other payment arrangements, and for any penalties and interest incurred.
- Contact your financial institution immediately if there is an error in the amount withdrawn.
CARES Act – Stimulus Checks
Signed into law on 3/27/2020
The “Stimulus Checks” are simply an advance of a 2020 refundable tax credit. When this advance is paid out, it will be based on the most recent filed tax return, 2018 or 2019, for determining your eligibility and the amount of the advance. The income eligibility for purpose of the advance is based on your Adjusted Gross Income (AGI) on your most recent filed return. However, your true eligibility for the credit is based on your 2020 AGI. What does that mean? Your 2020 return AGI will ultimately determine the credit your entitled to and the credit will be reduced for any advance you receive. If for some reason you don’t receive an advance, or less then then you are determined eligible for when filing your 2020 return, the credit will reduce your tax liability or become refundable if you don’t have a tax. In the event you receive too much of the advanced payment based on your 2020 return, you will NOT have to pay back any excess with your 2020 return.
The advance payments will be made by the most recent bank info used for Direct Deposit on your 2018 or 2019 return. Absent bank info, they will mail a check based on the last known address on file. What if you closed your account or moved? You can update your information or supply direct deposit details by clicking here. You can find more information about the stimulus payments here.
NJ Unemployment / Earned Sick Leave / Disability / Workers Comp Claims
See what type of claim you may be eligible for: Click Here
Business owners who would not normally be eligible for Unemployment, such as Self-Employed individuals, Independent Contractors, and or S-Corp owners may be eligible based on expanded eligibility requirements. While NJ Department of Labor does not have specific details posted on their website about this last I checked, the unemployment application process will make this clear and help you determine if you are in fact eligible.
CARES Act and Funding – For Business Owners and Self-Employed Persons
Paycheck Protection Program: This program will provide a loan of up to 250 percent of your average monthly payroll expenses (payroll expenses includes the net profit of self-employed individuals and independent contractors), along with some other core operating costs such as Rent, Utilities, and interest payments, up to $10 million. The loan is eligible to be forgiven, but please make sure you understand that criteria! Click here for additional information on qualifications and how to apply. Click here for more recent and additional guidance on the program. The information in these articles will help you understand what information the banks may require to process these loan applications. These articles will also help you prepare the paperwork you might need in advance to speed up the process. A SAMPLE loan application released by the SBA can be found here. These articles are NOT the final guidance yet and are subject to change and further clarification.